Šiaulių bankas is ready to provide micro-credits from the State micro-lending program funds
Šiaulių bankas won the first place among the banks that will be granting micro-credits from the State funds.
To provide micro-credits the Bank will be granted LTL 15 million, i.e. more than a half of all the funds provided to this program by the Government of the Republic of Lithuania (total LTL 28,8 million). The Bank is ready to start granting these credits right now.
Applying experience of the European Bank for Reconstruction and Development, Šiaulių bankas the first from all the operating banks in Lithuania has prepared its micro-lending program and has been implementing it for five years already. The same conditions and procedures will be applied to micro lending from the State funs.
Micro-credits up to LTL 86 000 (EUR 25 000) will be granted to small and medium-sized enterprises to finance their investments or to replenish turnover funds. The preference will be given to micro-enterprises (the enterprises with less than 10 employees). One enterprise can receive not more than two micro-credits during the whole period of the Program.
Credits will be granted for the period up to 6 years (in particular cases – for more). A loan may have a grace period for 6 month (in particular cases – for 1 year).
The Bank will not charge a fee for micro-credit administration, for micro-credit agreement and execution of other documentation related to this matter.
The interest rate of micro-credits granted by the Bank will not exceed 3 month EURIBOR plus 0.65 %. Micro-companies operating in the regional territories of Alytaus, Tauragės, Telšių or Utenos municipalities will receive interest rate of 3 month EURIBOR plus 0.15 %.
The procedures for micro-credit granting will be easier and quicker: the detailed business plan is not needed, only a short application; an answer if the Bank grants a credit will be given within 2-3 business days after all the necessary documents have been submitted to the Bank.
The Bank commits to lend LTL 15 million of granted funds within one year. The information about micro-credits will be spread through local branches and the Bank’s partners. The credits will be granted at the Bank’s branches in 29 towns of Lithuania.
In the middle of 2006, 78% of total Loan Portfolio was allocated for small and medium-sized businesses. 56% of the granted credits – not bigger than LTL 1000 thou. The SME Loan Portfolio increased by 58% during 2005.